LD 842
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LD 842 Title Page An Act To Prevent Price Gouging and To Stabilize Prices in the Sale of Milk ... Page 2 of 2
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LR 1171
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 7 MRSA §2954-D is enacted to read:

 
§2954-D.__Price gouging in sale of milk

 
1.__Sell fluid milk.__A person may not sell or offer to sell
fluid milk for an unconscionably excessive price.

 
2.__Investigation.__Whenever the retail price to consumers for
Class I milk exceeds twice what is paid to producers of the milk,
the commission may investigate to determine whether the price is
unconscionably excessive, as described in subsection 2.__If the
commission finds probable cause to believe that the price is
unconscionably excessive, the commission may after notice and
hearing make findings and issue orders to prohibit such
practices.__Any person aggrieved by an order of the commission
may appeal to the Superior Court.

 
3.__Unconscionably excessive price.__An unconscionably
excessive price is evidenced by:

 
A.__A disparity between the retail price and the producer's
price that grossly exceeds a reasonable rate of return;

 
B.__Significant increases in retail price that are not the
result of an increase paid to producers for raw milk and
that are not otherwise justified by changes in cost to the
dealer or store;

 
C.__Decreases in prices paid to producers that do not yield
corresponding decreases in retail prices for the same milk;

 
D.__Elevated prices or changes in price that appear to
reflect price-fixing or combination activity by 2 or more
stores or dealers; or

 
E.__Elevated prices that appear to result from regional
market share dominance by a store or dealer or by a
combination of stores or dealers.

 
Sec. 2. 7 MRSA §3153-D is enacted to read:

 
§3153-D.__Dairy stabilization subsidy

 
For each month after December 2005, the administrator of the
Maine Milk Pool shall distribute on a monthly basis to Maine's
dairy farmers a direct subsidy calculated as 50% of the
difference between $17 per hundredweight and the statistical
blend price of milk for Suffolk County, Massachusetts as
determined for that month by the Northeast Market Administrator


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